Government share sales hits Qinetiq

The London Stock Exchange's systems seem to be pretty much back to normal so far, with shares being traded normally after yesterday's chaotic seven-hour shutdown.

Investors in Qinetiq - the former research arm of the Ministry of Defence which the government was accused of selling too cheaply - may wish the freeze had continued. The company's shares have slumped 17.5p to 206p, a near 8% decline, on news that the MoD now plans to sell its 125m shares, an 18.9% stake. Credit Suisse, JP Morgan Cazenove and Merrill Lynch will start an accelerated bookbuild immediately to gauge interest in the offering, with a placing price to be determined at the close of this process. The government will retain a so-called golden share.

The government sold a stake to US group Carlyle for £42m in 2003. When the company floated in 2006, Carlyle made around £370m.

Overall the market is in positive territory after yesterday's Fannie/Freddie inspired surge. The FTSE 100 is up 47.5p at 5493.8, while the FTSE 250 is 16.4 points better at 9286.4.

Property companies have moved higher after an upbeat note on the sector from Lehman Brothers late yesterday. British Land is up 24.5p at 779p while Hammerson has climbed 23p to 980p.

Broadcaster ITV has added another 1.5p to 45.5p on continuing bid speculation, and confirmation it has appointed ex-Emap director Ian Griffiths as finance director.

A statement from Colin Cowdery's Resolution company that it planned to raise £1bn in a flotation in November has excited financial companies. Resolution says it plans to take stakes in financial services businesses with restructuring potential, investing £5bn over time. In the past the company has been linked with Bradford & Bingley, up 1.25p to 43.5p, and on Friday was forced to issue a statement saying it had not ruled out making a move on Friends Provident, up 2.6p to 104.3p.

But miners were weaker on continuing concerns about global demand, and pharmaceutical group Shire lost 18p to 942p after Goldman Sachs moved from buy to neutral.